Module 6: Intellectual Property Rights and Other Legal Forces IB-300

IB-300 Prof. Yefremian

National Law

• created and enforced within a certain jurisdiction within a sovereign nation

International Law

• set of rules nations have agreed to follow

• made from bilateral and multilateral treaties between countries

What are the two types of international law?

• Public International Law: governs relationship between governments (countries

  • ex: governs disputes between two countries over trade subsidies

• Private International Law: governs relationship between individuals and companies that cross international border

  • ex: a contract between businesses in two different countries

What are the different legal systems

• civil law

• common law

• religious law

• customary law

• mixed systems

Common law characteristics

• Adversarial nature: more adversarial and flexible than civil law systems

• precedent: relies on previous court decisions for legal guidance

• statutory interpretation: interprets statues and regulations in legal contexts

• geographic distribution: practices in Australia, Canada, Ireland, New Zealand, UK, US

Religious law characteristics

• Basis: religious documents or sources

• Divine Ordination: laws believed to be divinely inspired

• Dual Systems: common in Muslim countries

• Widespread Examples: Hindu, Jewish, and Islamic Law

• Geographic Presence: Middle East, Afghanistan, Mauritania, Pakistan, Sudan

Civil law characteristics

• Origin: developed from ancient Roman law and influenced by religious law

• Codification: Systematic collection of laws designed to cover all areas of concern

• Global Reach: the most widespread system globally

• Inquisitorial Approach: judges actively question and challenge evidence to track down the truth

• Geographic Distribution: europe, russia, central and south america, japan, korea

The rule of law

• refers to a legal system in which rules are clear, respected, fairly enforced, and followed by individuals, organizations, and the government

• countries based on the rule of law encourage foreign investment

What is intellectual property?

• a creative work or invention that is protectable by patents, trademarks, trade names, copyrights, and trade secrets depending on jurisdiction

What are the different IP rights

• Patent: (country specific laws vary) government grant giving the inventor of a product or process exclusive right to manufacture, exploit, use, and sell that invention process

• Trademarks: (vary country to country) shape, color, design, phrase, abbreviation or sound used by merchants of manufacturers to designate and differentiate their products

• Trade Names: a name used by merchant or manufacturer to designate and differentiate its products

• Copyrights: exclusive legal rights authors to publish and dispose of their work

• Trade Secrets: (most common type) formulas, processes, patterns, designs

What is extraterritoriality?

• A country’s attempt to apply its laws to nonresidents and foreigners, and to activities that take place beyond its borders

• when a country tries to push its law past its borders

• ex: US citizens and green card holder living outside US soil are expected to comply with U.S. tax laws; extended to other areas such as employment, antitrust, and environmental laws

What is arbitration and its main characteristics?

• Arbitration is a dispute resolution process instead of going to court

• takes place out of court

• tends to be quick & less expensive

• two sides select an impartial third party = arbitrator

• arbitrator’s decision is usually final 

What is litigation and its main characteristics?

• when arbitration and other resolution methods are not successful in international trade disputes

• litigation is a legal proceeding conducted to determine and enforce particular legal rights

• legal dispute

• tends to be long & expensive

• settle litigation by working out agreement or go to court

• jury or judge determine final resolution

Competition laws or anti-trust laws

another term for anti-trust laws

• prevent inappropriately large concentrations of power and its abuse through price fixing, market sharing, and monopolies

Foreign Corrupt Practices Act (FCPA)

• US law that prohibits payments to foreign government officials to receive special treatment

• applies not only to US companies but also to foreign firms listed in the US or involved in US-based transactions

• new agreements on bribery include UN Convention against corruption signed by 190 countries and the EU as of 2023